PR. COMMISSIONER OF INCOME TAX, CENTRAL-2, NEW DELHI vs. M/S MAHAGUN DEVELOPERS PVT. LTD. (REPRESENTED BY MAHAGUN INDIA P. LTD.)

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ITA/683/2016HC DelhiDLHC01261515201612 December 2019Bench: HON'BLE MR. JUSTICE VIPIN SANGHI,HON'BLE MR. JUSTICE SANJEEV NARULA1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court decided to dispose of the present appeal as not pressed. This decision was based on the circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular stipulated a monetary limit of Rs. 1,00,00,000/- for the Department to pursue matters before the High Court. Since the tax effect in the present case was Rs. 15,51,465/-, which is below the prescribed monetary limit, the appeal was not considered pressable by the Revenue. The High Court did not decide the substantive issues of the appeal on merits.

What were the facts?

The appeal was filed by the Pr. Commissioner of Income Tax, Central-2, New Delhi (the Revenue) against an order of the Income Tax Appellate Tribunal (ITAT). The respondent is M/s Mahagun Developers Pvt. Ltd. The assessment year(s) are not specified in the provided text. The appeal challenges the decision of the ITAT, though the specific grounds are not detailed. The procedural history is limited to the filing of this appeal before the High Court. The amount in dispute, referred to as tax effect, is Rs. 15,51,465/-.

What were the issues?

The High Court had to decide whether to entertain the appeal filed by the Revenue. The primary consideration was a circular issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes on 08.08.2019, which fixed a monetary limit for the Department to pursue matters before the High Court at Rs. 1,00,00,000/-. The Revenue's contention, implicitly, would be to have the appeal heard on merits. The Respondent's position would likely align with the circular's implications. The issue is whether the appeal meets the monetary threshold set by the CBDT circular for departmental appeals to the High Court.

AI-generated summary — verify with the full judgment below

$~56. * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 683/2016

PR. COMMISSIONER OF INCOME TAX,

CENTRAL-2, NEW DELHI

..... Appellant Through: Mr. Kunal Sharma and Mr. Parth Semwal, Advocates.

versus

M/S MAHAGUN DEVELOPERS PVT. LTD.

(REPRESENTED BY MAHAGUN INDIA P. LTD.)..... Respondent Through: Dr. Rakesh Gupta and Mr. Rohit Kumar Gupta, Advocates.

CORAM: HON'BLE MR. JUSTICE VIPIN SANGHI HON'BLE MS. JUSTICE REKHA PALLI

O R D E R % 12.12.2019

In the light of the circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Judicial Section), Government of India, which fixes the monetary limit in respect of tax effect, inter alia, before the High Court in which the Department could pursue the matter as Rs. 1,00,00,000/- and in view of the fact that the tax effect in the present case is Rs. 15,51,465/-, the present appeal is disposed of as not pressed.

VIPIN SANGHI, J

REKHA PALLI, J DECEMBER 12, 2019 kd

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